The complexity of the economic, political and social processes taking place in the world leads to collisions that develop into crises. Economic and political crises today occur with enviable regularity. The reasons for their occurrence can be different.
As applied to the economy, a crisis is understood as a very significant disruption in its functioning, leading in general to a general decrease in activity in all its spheres. As a rule, the economic crisis leads to a long-term decline in production, consumption, and the accumulation of debts that cannot be repaid in a short time. The consequences of this are bankruptcies, an increase in unemployment, and a decline in GDP.
There are two main forms of the economic crisis. This is a crisis of overproduction and underproduction. The reason for the phenomenon of the first kind is the accumulation of excess quantities of goods in the market. Their appearance is caused by the desire of manufacturers to get more profit by expanding production. In a free economy and strong competition, it is impossible to accurately predict sales volumes. The impossibility of selling the manufactured goods dictates the need to artificially stimulate demand through a sharp decline in prices. This leads to the curtailment of production and bankruptcy of enterprises. The situation is aggravated by the fact that many businesses that crash during the crisis are open with borrowed funds.
Underproduction crises are largely due to reasons artificial in relation to the economic system. They arise due to phenomena that disrupt the normal functioning of production, financial, transport and other systems of the state. These can be wars, commodity embargoes, natural disasters.
Financial and political crises are often intertwined. However, they can also proceed completely independently. A political crisis in a general sense is expressed in unstable relations between political forces at different levels and on different scales. Accordingly, it is possible to distinguish domestic and foreign policy crises. The first ones appear locally, on the scale of one country. They are expressed in the weakening of state power, inconsistency in the political course, often lead to a struggle for power, riots, riots.
Interstate political crises arise as a result of clashes of interests of countries on various grounds (territorial disputes, division of international markets, etc.). Depending on the severity of the disagreements, political crises can be resolved by diplomatic means or continue to develop, turning into armed conflicts.
